Dubai and Abu Dhabi Renew Long-Term Gas Provision Agreement

Dubai Supply Authority (DUSUP) and the Abu Dhabi National Oil Company (ADNOC) have renewed their long-term agreement for the supply of natural gas to help meet Dubai’s energy needs.

First signed in 1998, the agreement saw the construction of the Taweelah-Jebel Ali pipeline that has been supplying Dubai with natural gas since 2001. The renewal will see ADNOC continue with its supply until 2033.

“Twenty years ago this month I had the privilege to sign the gas supply agreement drawn up under the direction of Sheikh Zayed and Sheikh Mohamed,” said Sheikh Ahmed bin Saeed Al Maktoum, chairman of the Dubai Supreme Council of Energy and director general of DUSUP.

"It gives me great pleasure to sign again [and] In doing so, we believe that we are not only extending energy cooperation between Dubai and Abu Dhabi in time, but also building on the foundations, originally laid in 1998 and reinforced over the years, to expand the breadth and depth of our energy relations now and in the future."

The contract allows ADNOC to build on its goal of creating a sustainable and economic supply of gas throughout the UAE, said Dr Sultan Ahmed al Jaber, Minister of State and ADNOC Group CEO.

“This supports ADNOC’s commitment to meeting the growing energy needs of the UAE. We will harness our gas resources for the benefit of the nation, working in close collaboration with our customers and partners, by making smart investments in the development of additional gas reserves,” he added.

The 2030 strategy of the Abu Dhabi Company involves unlocking new gas reserves. It was recently awarded two Front End Engineering Design (FEED) contracts for its planned offshore ultra-sour gas mega project.

The company said in a statement, ADNOC expects to produce more than one billion cubic feet of gas per day, the Hail, Ghasha and Dalma fields, enough gas to provide electricity to two million UAE homes.